3 weeks ago
Global markets stay cautious on Middle East tensions, oil rebound
On Friday, grown-ups who trade stocks around the world were being a little careful.
Something happened in the Middle East that made them worried.
Iran shared a plan that could make it harder for ships to travel through the Strait of Hormuz, a very important waterway for oil.
Because of that, the price of oil went up, and higher oil prices can make things more expensive.
On Thursday, stock markets in the United States went down a small amount.
On Friday morning, stock markets in Japan and South Korea also went down a little.
But in Europe, stock markets went up and reached a brand-new record high.
Traders in India expected their market to start the day at almost the same level where it finished before.
Everyone is also waiting for a big report about jobs in the United States, because it helps them guess what the country's bank, the Federal Reserve, will do next.
So for now, investors are watching the news and staying cautious.
US stocks ended lower on Thursday, with the Dow Jones Industrial Average down 0.85%, the S&P 500 down 0.18% and the Nasdaq Composite down 0.06%.
Salesforce fell 3% after a leadership reshuffle, Sandisk fell over 6%, Western Digital tumbled 13% on weak memory-chip guidance and AppLovin plunged nearly 20%.
WTI crude oil rebounded more than 4% to about $78 a barrel after Iran published a restrictive draft proposal for shipping through the Strait of Hormuz.
Asian markets traded cautiously on Friday, with Japan's Nikkei 225 down nearly 1%, South Korea's KOSPI down 0.95% and Hong Kong's Hang Seng down 0.20%.
Europe's STOXX 600 rose 0.16% to another record closing high, while Indian markets are expected to open flat with Gift Nifty near 24,650 versus Nifty's previous close of 24,636.
- Who
- Global investors and traders, including those in the United States, Asia and India, reacting to Middle East negotiations and the upcoming US jobs report.
- What
- Global stocks traded cautiously, with US and Asian indices lower, crude oil rebounding and European equities setting another record high.
- Where
- United States, Japan, South Korea, Hong Kong, Europe and India.
- When
- Friday, 7 August 2026, following Thursday's US market close.
- Why
- Uncertainty over Middle East negotiations and Strait of Hormuz shipping, firmer Treasury yields and higher crude oil prices weighed on investor sentiment.
Key facts
- Date
- Friday, 7 August 2026
- Dow Jones Industrial Average
- -0.85% on Thursday
- S&P 500
- -0.18% on Thursday
- WTI crude oil
- ~$78 per barrel, up more than 4%
- 10-year US Treasury yield
- 4.67%
- Nikkei 225
- Down nearly 1% in early Friday trade
- KOSPI
- Down 0.95% in early Friday trade
- Gift Nifty
- ~24,650 (Nifty previous close: 24,636)
Quotes
Shrikant Chouhan, Head of Equity Research at Kotak Securities
Equity research head at Kotak Securities providing day‑trading levels for Indian indices
“"For day traders now, 24,700/79000 would act as an immediate breakout level. Above this, the market could move up to 24,800-24,850/79300-79500. On the flip side, below 24,600/78600, we could see intraday price corrections down to 24,500-24,450/78200-78000."”
livemint.com
“"Wall Street ended lower overnight as investors booked profits following the recent rally, while firmer Treasury yields and a rebound in crude oil prices reflected continued uncertainty over the pace of progress in Middle East negotiations."”
livemint.com
Sources
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